American Property Casualty Insurance Association
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Jeffrey Brewer







April 29, 2014

Insurance Trade Association Says Chicago Ride Sharing Ordinance Needs More Work

PCI Supports Illinois HB 4075

CHICAGO - The Property Casualty Insurers Association of America (PCI) is urging the Chicago City Council to reject the proposed ride sharing ordinance that advanced out of the Committee on License and Consumer Protection last week and provide greater clarity on key insurance requirements.

“The latest proposal, while an improvement, still falls short regarding insurance coverage issues and adequate consumer protections,” said Jeffrey Junkas, regional manager, state government relations for PCI. “While the ordinance has problematic insurance mandates at vastly different levels, on the other hand, Illinois HB 4075 serves as an example of an approach that addresses the various insurance issues that currently leave us all vulnerable. HB 4075 does this by making the transportation network company (TNC) primary for coverage when their drivers are available for hire or with a passenger at one, clear dollar level; provides for various disclosures, such as to drivers of the TNC’s insurance coverage(s); and maintains personal lines insurers’ commercial exclusions.”

PCI believes it is important that ride share drivers and their passengers understand that the driver’s personal auto policy will not cover damage or losses arising when the car is used in a ride-sharing program. Legislation on this issue must provide appropriate disclosures and be clear regarding the commercial aspect of this activity. PCI seeks to remove any gaps that will generate legal disputes or shove the insurance exposure on to personal auto insurance, as that could force premiums for all drivers to increase.

“PCI supports innovation and competition in the marketplace, but it must be coupled with appropriate consumer protections,” said Junkas. “We support Illinois HB 4075 and urge quick Senate action on the legislation because it strikes that balance. However the City of Chicago needs to further strengthen the insurance requirements in its proposed ordinance.”

The Chicago City Council is expected to vote on the ride sharing ordinance at their Wednesday, April 30 meeting.

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.